Revenue, broadly defined as the total amount of money generated by business activities over a period of time, is a key driver of growth and an indicator of a company's overall financial health.That is also an important factor qualify for a business loan Or attract investors.
According to Bank of America's 2023 Small Business Report, more than half of U.S. small business owners will experience an increase in revenue from 2021 to 2022, and more than 60% will see additional revenue in the next year. We expect it to increase.
If you want to increase your small business's revenue, you need to start with marketing, building your customer base, adding new products, and more. Several experienced small business owners share tips on how to implement revenue-boosting strategies.
1. Build your network
Al Everett, a SCORE mentor and owner of Thrive, a real estate and construction company based in Traverse City, Michigan, emphasizes the importance of networking for launching new businesses, and says he sells three to four new businesses each week. We estimate that we are acquiring new potential customers. From people within his network.
In addition to building a customer base, word-of-mouth referrals can be particularly effective in increasing profitability, according to Everett. “You don't have to worry about lowering your prices to get projects or get clients because they'll come to you based on your reputation. And you can refer them. ” he says.
When it comes to building and maintaining your network, Everett says to keep it simple. That might mean joining local business networks or interest groups, but it might also mean setting aside a little time each day to get in touch with your contacts by phone. Even if he makes eight to 10 calls a day, he says, in a week he would have come into contact with 40 to 50 people.
2. Diversification of products and income sources
According to Christy Price, web designer and owner of Christy Price LLC, a web design company based in Austin, Texas, diversifying your price points and product offerings makes for a successful business, especially in times of economic uncertainty. Helpful. “Think about accessibility” and consider offering a smaller version of your product or service to appeal to a wider audience, says Price.
Her “Designer for a Day” service, for example, has been especially popular during the COVID-19 pandemic. By offering her 5 hours of her time to clients for a flat rate instead of custom building a website, which is invoiced at the end of the project and typically results in a much higher total amount, she saves money was able to respond to customers.
This diversification has made customers more comfortable investing in more expensive products and services. Price says that by enrolling in her inexpensive courses, clients can see the value they get from her teaching style, which often leads to purchasing other courses or digital products. “I feel like people are still willing to invest,” she says. “They’re just more aware of their price range and their value. budget teeth. ”
Price also increased his income by diversifying his income sources. The blog she started to drive traffic to her own website now also earns her affiliate marketing income from some of the products and services she reviews and recommends.
3. Reduce costs through automation and negotiation
Reducing business expenses not only frees up cash to reinvest in revenue growth strategies, it also helps stabilize prices to retain and attract customers. Jennifer Granville Love, director of partnerships and collaborations at Boston Beer Company, who also oversees financing for Samuel Adams Brewing “Identification of specific areas” is an effective way to reduce costs. , a coaching and networking organization.
Everett used artificial intelligence We saved thousands of dollars in attorney fees and time drafting real estate contracts and property descriptions. Be sure to check the sources your AI is using. “The data is as accurate as it is in the database,” he says.
If you don't have a lot, overhead To reduce your spending, you may want to consider creative ways to reduce your spending, such as negotiating. For example, Everett's company was able to lock in future rates and secure better payment terms by agreeing to work exclusively with one contractor. These favorable terms allow you to remain price competitive, plan strategically, and stay on top of contractor payments.
4. Prioritize authenticity.
Regardless of your industry, it's important to understand what makes you and your business unique. Glanville Love's emphasis is on sharing her personal business story. “No two entrepreneurs follow the same path,” she said in her email. “These unique backgrounds and experiences allow customers to really connect with the business and develop long-term brand loyalty.”
Similarly, Price says finding a unique and authentic niche is the key to blogging success. The same goes for networking interactions and phone calls, says Everett. Don't sell, have conversations, reach out to people, and lead on how you can help them. That way, when they think of your industry, they think of your business.
Above all, Everett reminds small business owners that it's not the product that sells, but rather the person behind it.
